Tenant Loses

Tenant's Conversation with Employee Didn't Orally Modify Lease

May 15, 2015    

Facts: An office building owner rented space to a media company. The tenant was permitted to vacate the space early, in the third year of the lease, provided that it gave 90 days’ written notice, returned the keys to the owner, and paid any outstanding rent and other...

Tenant Required to Pay for Parking Spaces on 'Must-Take' Basis

May 15, 2015    

Facts: A retail tenant’s lease provided that a certain number of parking spaces would be available outside the space it rented. The lease provisions specified that the tenant would let the owner know at the beginning of each month how many parking spots it would need. The...

Guaranty Not Rendered Unenforceable by Non-delivery

April 16, 2015    

Facts: A clothing store tenant signed a modification and extension agreement to extend its five-year lease. There had been no guarantor for the original lease, but the owner required the tenant’s principal to guaranty the lease in order to extend it. The modification and...

Tenant Can't Claim Constructive Eviction While Occupying Space

March 31, 2015    

Facts: A video rental store tenant stopped paying rent after the shopping center’s owner hung “Retail Space for Lease” signs in the windows and invited real estate brokers and potential lessee’s to tour the space. The tenant claimed that the owner’s...

Tenant's Request to Keep Decaying Mall Open Was 'Infeasible'

March 31, 2015    

Facts: For many years, a department store tenant operated in a mall. Eventually, the mall became run-down and had many vacancies. The county approved plans to tear down the mall and redevelop the site into a mixed-use, town-center-style development as part of the county’s...

Rent Abatement Was Unreasonable Penalty on Owner

February 27, 2015    

Facts: A shopping center owner sued one of its tenants, challenging the enforceability of lease provisions conditioning the tenant’s obligation to open a store and pay rent on a specific retailer operating a store in the center on the commencement date of the lease. It...

Farmer's Market 'Stalls' Violated Supermarket's Restrictive Use

January 29, 2015    

Facts: The lease between a shopping center owner and a supermarket tenant contained a restrictive-use covenant prohibiting the owner from leasing space to another grocery store or “food market.” The lease defined food market to include any vendor selling food items....

Nonmaterial Breach Didn't Excuse Tenant's Performance

January 29, 2015    

Facts: A tenant operating a securities firm moved out of its office building space three and a half years before the end of the lease term and stopped paying rent. The owner of the office building sued the tenant.

Termination Agreement Didn't Extinguish Tenant's Guaranty Obligations

September 26, 2014    

Facts: As part of its lease for space in a shopping center, a retail tenant signed a guaranty, in which the tenant personally guaranteed payment of rent in the event that the business couldn’t pay. The tenant later encountered financial difficulties and fell behind on its...

Tenant's Oral Request Not Sufficient to Renew Lease

September 26, 2014    

Facts: A restaurant tenant approached the owner of the space it rented to discuss renewing its lease. It orally requested a renewal, but didn’t put the request in writing, as required by the renewal provisions in its lease. Later, when the owner refused to renew the lease...

Bankruptcy Cap Applies to Claims Resulting from Lease Rejection

August 25, 2014    

Facts: A warehouse owner agreed to completely remodel the space into a daycare facility for a tenant. The owner paid for the improvements up front, but the tenant was required to pay back the amount in increments during the lease term, separate from monthly rent. After the...

Indemnification Exclusion Didn't Apply to Shopper's Lawsuit

August 25, 2014    

Facts: A tenant sublet its retail space to a national general store-type tenant with permission from the owner of the building. After the subtenant had moved in, a customer slipped and fell on a puddle of water outside the store’s entrance. She sued the subtenant for...